Will a BoE interest rate change affect the interest % on loans being offered?

RickMoney

Hi,

Can anyone comment if from previous experience when the Bank of England rates % was reduced if it followed that personal loan interest % also went down?

If they did, over what timescale did it happen?

Thanks

foxy-stoat

The BoE base rate doesnt really have much to do with the personal loan rates people get offered, its done on your personal circumstances.

bigisi

foxy-stoat wrote: »

The BoE base rate doesnt really have much to do with the personal loan rates people get offered, its done on your personal circumstances.

But that's not the question the OP asked, is it?

foxy-stoat

bigisi wrote: »

But that's not the question the OP asked, is it?

I do apologise.

RickMoney wrote: »

Hi,

Can anyone comment if from previous experience when the Bank of England rates % was reduced if it followed that personal loan interest % also went down?

If they did, over what timescale did it happen?

Thanks

No, the last time the BoE rate was reduced by 0.25% it had no impact on the personal loan I look out shortly afterwards.

The rate I got offered was 2.4%, which was the lowest Natwest offered at the time.

I cannot recall if they reduced their lowest rate to 2.15% at any point after the last time BoE reduced theirs my 0.25%.

Does that answer the question?

RickMoney

Thanks appreciate the replies and indeed the question was in reference to the advertised rates the lenders offer.

foxy-stoat

RickMoney wrote: »

Thanks appreciate the replies and indeed the question was in reference to the advertised rates the lenders offer.

The advertised rates will be the lender's headline rate - a rate that you may be offered or a higher one, subject to your personal circumstances.

I haven't seen the advertised rates drop any time after BoE base rate change over the years.